New Delhi: India has blocked China’s request to set up a dispute panel at the WTO in a case filed by Beijing against New Delhi’s incentive schemes for automobiles, batteries and EVs, an official said on Tuesday.
Earlier this month, China approached the WTO’s dispute settlement body (DSB) seeking the formation of a panel after bilateral consultations failed.
Beijing has alleged that certain conditions under India’s PLI schemes for advanced chemistry cell batteries, automobiles and EV manufacturing violate global trade rules by discriminating against Chinese products.
In a communication to the WTO, China said consultations were held on November 25, 2025, and January 6, 2026, but did not lead to a mutually agreed solution. At a DSB meeting, India blocked China’s first request for the establishment of a panel, the Geneva-based official said.
Seeking consultations is the first step in the dispute settlement process, followed by a panel request if talks fail. China is India’s second-largest trading partner.
In FY25, India’s exports to China fell 14.5 per cent to $14.25 billion, while imports rose 11.52 per cent to $113.45 billion, widening the trade deficit to $99.2 billion.